Note the complete lack of insulation on the stainless steel antenna/frame. An engineer warned top executives at Apple a year ago, that the design was doomed to make the phone a lemon. (Source: iFixIt)

IOS 4.0.1 is now available; it now "correctly" displays signal bars on supported iPhones

Also, U.S. Senator voices outrage about Apple's handling of the iPhone antenna problems

Life
is tough as an engineer. Last year Ruben Caballero, a senior
engineer and antenna expert at Apple, reportedly
warned the company's top management, including CEO Steven P.
Jobs, that the current production plan was badly flawed.
Lacking any insulation, he recognized from experience that the
antenna would likely be in for some serious
issues.

Bloomberg received
the information from a source close to Caballero. Caballero,
who still works at Apple has declined comment. Apple also
declined comment.

It appears that Apple blatantly disregarded
the call for insulating its antenna over fear that it would impact
the phone's size or weight. The new
antenna design, which wraps around the phone's frame was designed
to minimize weight and size.

Apple also reportedly received a
warning from a carrier partner sources say (likely AT&T) about
problems they were having during early testing. Again Apple
appears to have blatantly disregarded yet another warning placed in
front of it.

Despite selling a record
1.7 million iPhones at launch, Apple has since been overrun
with angry customers complaining their new Apple phones are actually
lemons. Apple has remained
unsympathetic, for the most part, which many say has damaged its
brand image. The company did announce that it will hold
a special
press conference on Friday to address the issues. Some
are predicting that Apple may launch a recall, which could cost the
company $1B USD or more.

In related news U.S. Sen. Charles
Schumer (D- NY) wrote an open
letter to Apple CEO Jobs blasting his company's handling of
the signal issues. The topic is a particular sore spot in New
York; New York City has, according to Apple employees suffered from
30 percent iPhone dropped call rates.

In the letter Sen.
Schumer calls Apple's upcoming cosmetic
patch to how many bars are drawn to be "insufficient".
He also suggests that Apple's demand that customers buy cases to fix
the issue is inappropriate. He writes, "The burden for
consumers caused by this glitch, combined with the confusion over its
cause and how it will be fixed, has the potential to undermine the
many benefits of this innovative device. To address this
concern, I ask that Apple provide iPhone 4 customers with a clearly
written explanation of the cause of the reception problem and make a
public commitment to remedy it free-of-charge."

In his
letter he cites the Consumer Reports' decision to drop
its endorsement of the iPhone. Clearly a jilted Apple
fan, Sen. Schumer concludes, "I look forward to Apple's swift
action on this matter, and once again laud Apple for its innovative
efforts and service to millions of Americans."

"Compare to Android, Verizon is trying to offer super deals just to give away the phones and demand is way behind the iPhone."

How is sold out 1st day same as iphone 1st day sale of the droid x less demand?? Thats max demand as it sold out on launch day same as iphone, so no difference demand wise as it capped out, and is back ordered currently.